Compute Resources

Definition ∞ Compute resources are the processing power, memory, and storage capacity required to run digital operations. In the context of blockchain, these resources are essential for validating transactions and maintaining network integrity. Mining cryptocurrencies and executing smart contracts consume significant compute resources. Their availability and cost influence the efficiency of decentralized systems.
Context ∞ The demand for compute resources in the crypto sector is a constant news item, especially concerning energy consumption and environmental impact. Discussions often involve the transition to more energy-efficient consensus mechanisms, like proof-of-stake. Advances in hardware and distributed computing solutions aim to optimize resource usage for scaling blockchain networks.